Paulson explains $107m Sino-Forest loss
June 24, 2011
Britt Erica Tunick
In a letter to investors, Paulson finally detailed the firm’s losses, which are smaller than news reports had assumed, and explained what the firm was thinking when it became the largest shareholder in a company that some believe to be a fraud.
After weeks of refusing to discuss its Sino-Forest position, Paulson & Co. sent its investors a four-page letter earlier today detailing the firm’s involvement with the Chinese forestry company, which has been accused of fraudulent accounting and cost Paulson hundreds of millions of dollars of paper losses when those allegations caused its stock to collapse in early June.
In the letter, Paulson explains its initial decision to invest in the company and the details surrounding the firm’s sale of its entire position between June 6 and June 17. The firm had declined to explain its position to investors, even when asked about it at the firm’s recent investor event in Paris.
“Now that we have sold our position, we can discuss this matter with our investors in more detail. Therefore, we would like to discuss with...
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